During the year of 2021, Daniels corporation collects all of the Accounts Receivable and sells the Land for $ 3,000,000. The taxable income of Daniels Corporation, if it were a regular S Corporation for the year of 2021, is $ 590,000. The Built-in Gain Tax ( Section 1374 of the Internal Revenue Code) of Daniels Corporation for the year of 2021 is ( plz explain this) $206,500 $123,900 $420,000 $245,500

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
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Chapter11: The Corporate Income Tax
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Problem 1MCQ: Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss...
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During the year of 2021, Daniels corporation collects all of the Accounts Receivable and sells the Land for $ 3,000,000. The taxable income of Daniels Corporation, if it were a regular S Corporation for the year of 2021, is $ 590,000. The Built-in Gain Tax ( Section 1374 of the Internal Revenue Code) of Daniels Corporation for the year of 2021 is ( plz explain this)

$206,500

$123,900

$420,000

$245,500 

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